21st of December 2006

iPropertyCLUB News

British Exodus Matched by Influx of Economic Migrants

The cultural effect of globalisation is making cross-border migration more appealing to British workers; but what effect is this having on the UK economy?

David Smith of The Sunday Times recently highlighted Britain’s ‘swing door’ of migration, saying: “While record numbers are coming to Britain, mainly in search of jobs, there’s also a significant flow in the other direction. Last year 565,000 people came from abroad to live here, while 380,000 moved out, a net inflow of 185,000. The Treasury is assuming that the inflow will continue at about this level — 185,000 to 190,000 — to 2011.”

This report follows the recent study by the Institute for Public Policy Research (IPPR) which found that 5.5 million expatriate Brits live abroad and 200,000 more are leaving every year. While retirement is a key driver, many are now leaving much earlier for a range of other reasons. Many cite the rising cost of living in Britain, higher taxes and the so-called ‘nanny state’.

There are other socio-economic changes contributing to this new trend, however. Many are going in search of a new life and a new career while others are following their career into new countries. Most Brits opt for the traditional favourites like Australia, Canada and Spain, but they are also starting to move to Asia and the Middle East, with a significant number exploring opportunities in Central and Eastern Europe (Hungary and Croatia for example).

As Smith points out, many of these emigrants are of working age and, while more young professionals are leaving the UK, they are being replaced by a rising number of economic migrants.

Citing the findings a new report on Britain’s pool of talent, Smith identifies a major cultural change that could increase the exodus of young Brits abroad. This new report from Experian, called Attracting Talent, points out that British people have been traditionally disinclined to move in search of work. These “geographically immobile” professionals would, if anything, limit its movement between the UK regions. This is changing, however, with more airports, cheaper flights and better transport links making it easier to live and work (or even commute) abroad.

While the Chancellor’s new residency rules for expats will limit the amount of time that can be spent in the UK, this may still suit many professionals and business people.

Related news
The latest survey from the Association of Residential Letting Agents (ARLA) in the UK has found that only one in twenty letting agents believe that EU immigration has made a dramatic impact on the market. In spite of the fact that around 500,000 have entered the UK since ten new countries joined the EU, one in twelve agents say it is proving impossible to get references on prospective tenants from these countries which keeps them out of the private rented sector

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